July 18, 2011
Reinstating Liberty Would Cost How Many Jobs?
James Pethokoukis has some substantive ammo against the claim that "Cutting spending by $111 billion, as some Republicans want to do, would cost the economy 700,000 jobs."
Now I will admit that I am not sure if those are jobs somehow not created, jobs somehow not saved or what exactly.
Jimi P shares some data on both sides and comes down squarely in the "bull****" camp:
I have expressed my doubts about this before, as has economist John Taylor who, after examining data as opposed to models, concludes this about the Obama stimulus (bold is mine):
Have to agree with his conclusion: "Kill jobs? The GOP plan would potentially be a powerful job creator."
The point essentially becomes a referendum on Keynesianism. David Boaz reminds (in a different context):
Everybody talks about the return of Keynesianism these days. We've ratcheted up federal spending in a vain attempt to put people back to work. But Lord Keynes himself suggested that 25 percent of GDP was the "maximum tolerable proportion" that the government should take. And total government spending in the United States is already around 39 percent and headed up if we don't make changes. We are creating an unaffordable and economically destructive transfer state.
Economics and Markets Posted by John Kranz at July 18, 2011 3:04 PM